Business Start-up Costs in the Netherlands

1. What is the minimum share capital?

A Dutch limited liability company requires a paid share capital of 18,000 EUR in order to be incorporated, while a joint stock company in The Netherlands requires at least 45,000 EUR as an initial share capital.

2. What are the Company Registration fees? 

The company registration procedure in The Netherlands is not for free. The fees that have to be paid are summed to approximately 2,400 EUR.

3. What are the costs to rent an office space?

The costs for renting an office space in The Netherlands varies by area, since the price in smaller cities outside the metropolitan areas are 20-50% lower. Offices require at least 200 square meters per person and the cost for renting is an average 17 EUR per square meter.

4. What are the costs for a virtual office if the client will not rent a location?

A virtual office in Holland still offers an address, a phone number and a fax number, but at a lower price and without the necessity of a physical office in The Netherlands. An average cost for a virtual office in The Netherlands is 1,500 – 2,000 EUR per year.

5. What is the cost of hiring an employee?

The standard of living is pretty high in Holland, therefore the salaries are also high. An employer has to pay, as a consequence, an average salary of 2,500 EUR per month to an employee. All taxes are deducted from the salary at source.

6. What are the costs of hiring a local accountant?

A local accountant in The Netherlands is preferable since he has experience in dealing with financial matters within the Dutch system. The costs for hiring a local accountant in Holland are between 200 and 400 EUR, depending on the company’s activity, number of invoices and other services performed.

7. What is the yearly corporate tax?

Any Dutch company has to pay an annually corporate tax rate of 25% for profits exceeding 200,000 EUR. For a less profit, the corporate tax rate in Holland in 20%.

8. What is the yearly dividend tax?

The yearly dividend withholding tax for a Dutch company is of 15%.